This document discusses the growth of startups in Indonesia from 2010 to the present. It notes that in 2010, Indonesia had 22 million internet users but small internet penetration, while today it has over 80 million users and mobile internet is fueling growth. The number of active startups in Indonesia has grown to over 890, with many diaspora and returnees starting companies. Venture capital investment in Indonesian tech startups has increased from just 3 deals in 2010 to over 99 deals in 2014. The document predicts that mobile/social will drive new distribution models and that software will continue "eating the world", including in industries like ad-tech, education, finance, and government in Indonesia. It argues Indonesia is well positioned to

1. Willson Cuaca
Managing Partner - East Ventures
May 2015

2. What’s startup?

3. a startup is company
designed to grow fast
Today context:
early stage technology
company

4. startup
3 core requirements
TalentMarket Capital

5. that invests in consumer Internet, mobile and
enterprise startups
South East Asia focus (market)
early stage fund (capital)
Majority portfolios are based in Indonesia

6. 2010
INDONESIA
22M Internet users
(sizeable market)
Large number of Fb users
(users adoption)
Fast growing mobile Internet
(Mobile generation leaps frog desktop)
Small Internet penetration
(potential growth)
when we started in

7. 2010 2014
Internet Population 22M 80M
Internet penetration 13% 30%
Social Platform Facebook, BBM Fb, Twitter, Path, Line, Instagram
Mobile platform Nokia, Blackberry Android, Blackberry, iPhone
Online shoppers < 500k 16M (20%)
Transactions Volume (est) $100M $4B
E-commerce model
Forum, photoblog
(C2C)
Marketplace, Classified, Retailers
(C2C and B2C)
Internet banking 1 All
Transactions Growth < 1000 / month 5M / month
Shopper distribution 90% Jakarta 40% Jakarta
Payment mode Bank transfer
Bank transfer, Credit Card,
Internet banking, e-Money
Mobile commerce 0% > 30%
Internet & Market potential

8. The state of Indonesia startup ecosystems
2015
Startups are mushrooming in Indonesia
890+ active startups (source: http://techlist.asia)
Diaspora and returnees are back to Indonesia to build the
country
Some of them are in this room
Indonesia is top Investment destination in South East Asia

9. The numbers

11. Indonesia Tech Venture Capital / Incubator
0
8
15
23
30
2010 2011 2012 2013 2014
25
16
99
3
LDV

12. Indonesia’s positioning in South East Asia
Number of deals: top #2
source : https://techlist.asia/

13. Indonesia’s positioning in South East Asia
Number of E-commerce startup: top #1

14. Indonesia’s positioning in South East Asia
The largest deal: Top #4
Germany Malaysia Germany

15. Young talent movement
Old economy vs new economy
Status quo vs disruptive
Safe & stable vs fast pace & dynamic
Brain war and levelled playing field

16. Diasporas & Returnees are back in BIG time

17. Snowballingeffect
Diasporas & Returnees are back in BIG time

18. How Indonesia startups make impact
for the country (case study)
Direct hire
1500
In-direct Supporting
350,000
Online shop owner
Tutor / teacher
3rd party couriers
Freelancers
Consumer outreach
11M / month
E-commerce buyer
Merchants
Mobile app download
Started by
Seed funding (read: believing)
50 young Indonesian + lots of brain power

19. Near Future

20. How we look at NEAR FUTURE
Mobile and Social is a new DISTRIBUTION
platform
Targeted, curated and intend driven
information drive by BIG DATA
Software is eating the world (inc. Indonesia)
Ad-tech, Edu-tech, Fin-tech, Food-tech, e-Govt, SaaS

21. Golden Era of Indonesia Digital Ecosystems
How we can win REGIONALLY
MY
(62%)
INDONESIA
(31%)
SEA Internet user ratio
PH
(34%)
TH
(43%)
VT
(35%)
SG

22. Golden Era of Indonesia Digital Ecosystems
How we can win REGIONALLY
Win Indonesia

23. Government Role
(wish list)

24. How it works
Gov’s support

25. Indonesia

26. Thank you
email: willson@east.vc